News Contact Us

Ant Group’s stalled IPO could reduce its valuation by USD 140 billion

Author : Pankaj Singh | Published Date : 2020-11-09 

Ant Group, the highest valued financial technology company, may reportedly face a loss of around USD 140 billion in valuation after its massive stock debut was halted by the Chinese government.

If Ant Group’s USD 280 billion pre-IPO valuation is reduced, the company would essentially be less worth that it was a couple of years, sources claimed. For those uninitiated, the fintech giant had secured funds from some of the largest investment firms such as Temasek Holdings Pte, Silver Lake Management LLC and Warburg Pincus LLC.

In fact, the reduced valuation will also lower the fees for investment banks including China International Capital Corporation. Moreover, it provides the company with less weight while carrying out acquisitions in its efforts to expand beyond its Chinese base.

However, the Chinese officials had halted the Ant Group’s USD 35 billion share sale just as it was about to go public in Hong Kong and Shanghai.

According to reliable sources, the stalled IPO has compelled Ant Group to look for more capital and seek for national licenses in order to operate in China, which may inevitably result in loss of company’s valuation by almost a half. Regardless, the regulatory details are still at an early stage and can change in the upcoming months.

Singapore-based Head of Financials at Aletheia Capital Sanjay Jain mentioned in a comment that Ant Group’s price to earnings ratio could reduce by 10 times its lending profits, which is half of the previously assigned target. He added that the new price will put the financial technology giant in line with the valuation of better ranking banks.

Sources with knowledge of the matter stated that Ant Group could face around 25-50% loss in valuation, it its pre-IPO price ratio reduces to the level that of major global banks. At present, Ant’s stock value is worth 4.4 times to that of its book value.

Source Credits –


About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

No-deal Brexit would cost UK more than COVID-19, warns BoE Governor

Published Date: 2020-11-25         Author: Pankaj Singh

Bank of England Governor, Andrew Bailey, has reportedly warned that the economic cost of a no-deal Brexit would be much more significant in the long haul than the one caused by the COVID-19 pandemic. Bailey stated that failure to finalize a deal prior to the expiration of the Brexit transition by... Read More

Bega to raise $400 million to buy Lion Dairy and Drinks business

Published Date: 2020-11-24         Author: Pankaj Singh

Bega Cheese, a leading Australian diversified food company, reportedly looks set to include yogurt in its product portfolio after beating Tanarra Capital and global dairy giant, Saputo Inc., in the bid to buy-out the Lion Dairy and Drinks business. The deal, valued at $550 million, is currently i... Read More

Israel orders 10 million doses of AstraZeneca’s COVID-19 vaccine

Published Date: 2020-11-23         Author: Pankaj Singh

The Government of Israel has reportedly signed a new agreement to purchase 10 million doses of the COVID-19 vaccine developed by the Oxford University. This new announcement was jointly made in a statement by the pharmaceutical firm AstraZeneca, who is producing the vaccine, and the Israeli governme... Read More

© 2020 Fractovia. All Rights Reserved